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Company Registration in Oman

Are you looking to register a company in Oman? Boost your business with Gryffin Capitalist hassle-free! We are here to assist our clients in legally starting a business in Oman.

Avail of Our Professional Business Service in Oman for:

  • Company Registration Procedure
  • Corporate Bank Account Opening
  • Acquiring Necessary Licenses
  • Registering for Taxation
  • 24*7 Assistance

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Company Registration in Oman

Company Formation Services in Oman

Oman has emerged as a leading country, passing business-friendly laws and creating a welcoming environment for foreigners to encourage business setup in Oman. There are Business Opportunities in Oman ranging from estate to taxation and accounting.

Over the years, Oman has become the choice for international investors. As the biggest nation in the Gulf Cooperation Council (GCC) after Saudi Arabia, Oman offers an ideal location for company registration due to its abundant natural resources, historical significance as a trade hub, and accessibility.

Are you seeking guidance on a Company Registration in Oman? Keep reading to learn more about operating a business in the country before you establish your presence here.

Types of Company Formation in Oman

You can choose from the following jurisdictions for your Oman Company to start your business in the country:  Mainland, Free Zone. The company formation costs in Oman may vary depending on your customised requirements. 

Invest in Oman

Both foreign investors and the nation itself have greatly benefited from the Foreign Capital Investment Law (FCIL) with the introduction of the New FCIL 2020. This updated law allows 100% ownership of businesses in Oman.

Furthermore, under this law, foreigners are no longer required to deposit a minimum of OMR 150,000 as share capital, eliminating any capital requirements.

  • A Favourable Tax System - One of Oman's features is its investor tax system, which makes registering companies in this country much easier.
  • Presence of Free Zones - Several industrial parks and free trade zones have been established recently. The free zones include Salalah Free Zone, Sohar Free Zone, Al Mazunah Free Zone, and Duqm Special Economic Zone.
  • Free Trade Agreements - Oman has successfully engaged in free trade agreements with many countries.
  • No Requirement of Resident Shareholders - There is no obligation to appoint a shareholder for companies in Oman.

Who Can Proceed with Company Registration in Oman?

Oman can be an attractive choice for individuals or companies looking to establish their businesses for various reasons. Here are some groups that may consider choosing Oman for company formation.

  • Investors - Oman's liberal investment policies and potential for high returns attract investors seeking portfolio diversification and new markets.
  • Local Entrepreneurs - Omani nationals benefit from a supportive business environment, local market access, and familiarity with regulations and customs.
  • Local Entrepreneurs - Omani nationals benefit from a supportive business environment, local market access, and familiarity with regulations and customs.
  • Industry Specific Businesses - Oman's liberal investment policies and potential for high returns attract investors seeking portfolio diversification and new markets.
  • Startups & Small Businesses - Oman fosters innovation and entrepreneurship with incubators, funding, and skilled talent available to support emerging companies.
proceed to setup a company in oman

Business Structures of Oman Company - The Permitted Corporate Entities

The following business structures can be used to Start Business in Oman. There are four other types of company registration entities.

  • A Limited Liability Company (LLC) - Established in Oman, an LLC offers liability protection, regulated capital access, and ease of share transfer, with limited liability for shareholders.
  • A Partnership Company - In case you want to form a partnership for your Company Setup in Oman, you can have one or more partners who will have joint and several liability for debts.
  • Joint Venture - A joint venture business in Oman is not required to have minimum capital. If it is for a specific duration or project, an applicant seeking company registration in Oman may use the structure mentioned above.
  • Joint Stock Business - These businesses are established with the bare minimum funding. Shares of Joint Stock Companies may be made available to the general public.
  • Holding Company - A Holding Company would exercise some substantial control over its sister companies or subsidiaries. Over the subsidiary companies, there would be more than 51% control.
  • Branch Office - Expanding your company into the Middle East? Consider opening a branch office in Oman. You'll need a contract with an Omani government entity and be prepared for a multi-step approval process.
  • Sole proprietorship - Starting a sole proprietorship company in Oman is one of the best options for investors to consider when investing in the country.
  • Representative Office - To open a representative office in Oman, understand it's an extension of the parent company, similar to a branch office, restricted from engaging in profit-making activities and limited to tasks that promote the parent company's marketing goals.

Procedure for Business Setup in Oman

Business setup in Oman involves several steps and procedures, which can seem overwhelming. However, with careful planning and adherence to the compliance requirements, the process can be streamlined and successfully completed. 

Here is a comprehensive overview of the process involved in setting up a company in Oman; you must adhere to the process:

  • Choose Business Structure - Decide on the business structure you want to establish.
  • Unique Company Name - Choose a company name that complies with Oman's Ministry of Commerce and Industry guidelines.
  • Determine Capital Requirements - Determine minimum capital based on the chosen business structure and activity.
  • Secure Local Sponsorship - Obtain a local sponsor (Omani national or company) holding at least 30% of shares.
  • Obtain Approvals - Obtain necessary approvals from relevant authorities based on your business nature.
  • Lease Commercial Space - Find suitable commercial space and comply with location-specific requirements.
  • Required Legal Documents - Ensure all required documentation to prepared and organised. 
  • Register the Company - Submit the required documents to the Ministry of Commerce and Industry.
  • Obtain Commercial Registration - Receive a commercial registration certificate, officially establishing your company.
  • Acquire Necessary Licenses - Apply for licenses or permits specific to your business activities.
  • Register for Taxation - Register your company with the Oman Tax Authority and obtain a taxpayer identification number (TIN).
  • Open a corporate Bank Account - Open a corporate bank account in Oman for smooth business transactions.

Compliance Requirements for Setting Up a Business in Oman

There are compliances that need to be followed for a Company Registration in Oman:

  • Corporation Tax: All businesses must register with the Ministry of Finance to file tax. A 15% corporate income tax is imposed on companies.
  • Small Business Tax: SMEs and other businesses only need to pay a 3% tax if their authorised share capital is below OMR 50,000 or if their gross income does not exceed OMR 100,000.
  • LLC Compliance: Any changes in an LLC must be notified to the Ministry of Commerce and Investment.
  • Annual General Meeting: An annual general meeting must be held annually.

The Post-Incorporation Process to Starting a Business in Oman

After completing the process for a Company Formation in Oman, there are procedures that need to be followed to comply with the laws and regulations. Some key post-incorporation procedures for a registered company in Oman are as follows:

  • Obtaining a Tax Card: Within 30 days of registration, companies must obtain a Tax Card from the Tax Authority. This card is essential for tasks such as opening corporate bank accounts, signing contracts and filing tax returns.
  • Registering for Social Security: Companies must register their employees with the PASI (Public Authority for Social Insurance) within 15 days of their employment start date. Employers are responsible for contributing to the Social Security Fund on behalf of their employees.
  • Registering for Value Added Tax (VAT): Companies must register for VAT if their annual turnover exceeds OMR 38,500 (USD 100,000). The registration process involves obtaining a VAT registration number and submitting VAT returns.

Company Registration Cost in Oman - The Categories

When it comes to Setting Up a Business in Oman, there are costs involved. These include registration fees, which differ based on the type of business. 

For example, an LLC requires a registration fee of OMR 1000 (subject to change depending on the business activity).

  • Legal Fees: The legal fees also come into play. It can vary according to the complexity of your business. You can expect to pay between OMR 1000 and 5000 for services.
  • Government Fees: Additionally, government fees must be paid when Starting a Business in Oman. These include registration fees imposed by the Oman Ministry of Commerce and Industry, the Chamber of Commerce registration fees, and the Ministry of Labour registration fees.
  • Office Space: It is another expense that needs consideration. The cost will depend on factors such as location and size. Generally, ranges between OMR 1000 to 5000 per month.
  • Staff salaries: The amount of money employees are paid will depend on their job position and level of experience. However, it is crucial to consider this factor when calculating expenses.
  • Advertising: The cost associated with marketing and advertising will vary depending on the nature of your business.

In addition to these expenses, there may be costs involved, such as obtaining a business license, registering for taxes and hiring an accountant. Although the overall cost is generally not very high, it can still fluctuate based on factors such as the type and size of your business and its location.

Documents Required for Company Formation in Oman
Articles of Association
Memorandum of Association
Tax Registration Document
Initial Certificate of Deposit
Shareholders' Identity Card
Visas and Shareholder Information
Certificate of Chamber of Commerce and Industry Membership
Benefits of Company Formation in Oman
Tax Benefits
Business-Friendly Environment
Foreign Direct Investment
Formation of Limited Liability Companies (LLCs)
Free Trade Agreements
No Obligation for a Resident Shareholder
Our Business Setup Services in Oman
Business Incorporation
Accounting and Bookkeeping
Auditing
Registration for Value Added Tax (VAT)
Branch Office in Oman
Protection of Intellectual Property

Why Choose Gryffin Capitalist to Incorporate a Company in Oman

Seeking professional guidance from legal and business experts is highly recommended to ensure a smooth company formation in Oman and successfully complete registration. Gryffin Capitalist can help you through the process. 

If you're interested in getting guidance for your company registration in Oman, get in touch with our experts today! Our experienced team will promptly respond to all your inquiries and provide the assistance you need.

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Frequently Asked Questions (FAQs)

The Ministry of Commerce and Industry(MOCI) is the primary regulatory body for company registration.

Oman's legal precedents and laws are based on common law, and business laws are fairly lenient. In Oman's commercial courts, all types of business disputes are arbitrated.

The International Capital and Investment Law (Royal Decree No. 50/2019) is the primary legislation governing international investment in Oman.

An LLC's owners are only held liable for a certain level of capital contribution.

The Employment Law, which was established by Sultani Decree No. 35/2003, is the primary statute governing employment and the relationships that result from it.

The following documents are essential: Visas and Shareholder Information Tax Registration Document Shareholders' Identity Card Initial Certificate of Deposit Certificate of Chamber of Commerce and Industry Membership.

The MOCI (Ministry of Commerce and Investment) must hold the name in reserve. The LLC's name must accurately describe the kind of activities it engages in. The name must adhere to the MOCI's guidelines. The name must not mislead the public or shareholders.

The following corporate structures are permitted: Limited Liability Company Joint enterprise Joint Stock Businesses Holding Company Branch Office Representative Office.

The advantages of an Omani company registration are as follows: Direct foreign investment Free Trade Accords No resident shareholder is necessary.

The following requirements are mandatory: Company taxes Tax on Small Businesses LLC Conformity Annual Meeting of the Whole.

No, in order to incorporate in Oman, a resident director is not necessary. In an Omani company, directors are not required to be citizens of Oman.

The applicant's chosen business structure will determine the minimum capital needs.

Common law serves as the foundation for all Omani legislative decisions and statutes. Oman's business laws are rather lenient. In Omani commercial courts, conflicts pertaining to business are resolved in all ways.

The International Capital and Investment Law (Royal Decree No 50/2019) is the primary legislation governing international investment in Oman.

An LLC's shareholders' liability is capped at their initial capital investment.

The steps mentioned below are to be followed: Choosing the activities carried out in the business Registering the Company Submit Documents Reserve Name & Pay the Fees Get the Certificate of Incorporation and License.